FOM Newsletter December 2002
Morocco Week in Review December 28 2002 

RABAT, Dec 24 (Reuters) - Generous rainfall in November and December have increased Morocco's area sowed to cereals by 84 percent, raising hopes for a harvest above an average 6.0 million tonnes, a government official said on Tuesday.  "Cereals-sowed areas stood at 3.5 million hectares (8.65 million acres) on December 20, 84 percent more than at the same date of 2001," a senior Agriculture Ministry official said.  The figure could reach 4.5 million hectares, he added. "November and December rainfalls ensured an excellent start for the campaign," he said.  Unlike last year, which saw generous but late rains in December, the areas planted to cereals benefited from early wet weather which will ensure seeds have longer exposure to moisture.  Up to December 20, the national average rainfall stood at 209 millimetres against 126 millimetres in a normal campaign. Dams are also fuller.  "If we get 30 millimetres of rains in February and another 30 in March, the harvest will exceed by far the 6.0 million tonnes (average)," the official said.  Some 50 percent of soft and durum wheat seeds available in the market have not yet been sold, meaning that areas planted to cereals could rise by 50-80 percent before the end of January, he added. Output in the 1995/96 campaign reached a record 10 million tonnes, freeing the North African country from imports but the harvest dropped to 1.8 million tonnes in the 1999/00 campaign creating a shortfall of some 6.0 million tonnes. The harvest in the 2001/02 campaign was 5.0 million tonnes.  A bumper cereals crop means a strong growth in the economy, which relies heavily on agriculture. The sector employs 40 percent of the country's workforce and contributes up to 20 percent of its gross domestic product.  

((Reporting by Souhail Karam, editing by Allan Seccombe; rabat.newsroom@reuters.com ; +212-37 720065)) © Reuters Limited. 

Dec.24 - A delegation from the German region of Rhine-Land-North Westphalia has recently held a series of meetings with officials from the Moroccan department of environment to look into a project of creating in Morocco a Special Waste Elimination Center.  The project is part of the bilateral cooperation convention signed in October 2001 between the two countries' governments. It provides for supporting Morocco's efforts to create the center. Germany will finance the feasibility study.  The German delegation inquired about progress made in the project and visited industrial plants and potential sites of the projected center.

RABAT, Dec 25 (Reuters) - The unemployment rate in Morocco stood at 11.7 percent at the end of the third quarter, up from 10.3 percent at the end of the first half, official data released on Wednesday showed. The unemployment rate at the end of the third quarter of 2001 stood at 13.0 percent of a 10.06 million workforce. At the end of September 2002, the workforce stood at 10.2 million, the state Statistics Directorate said in a report.  In urban areas, the jobless rate at the end of third quarter this year was at 18.2 percent compared with 19.7 percent at the end of June 2002 and 19.5 percent in September 2001. A total 253,000 jobs have been created in the September 2001-September 2002 period of which 179,000 were in urban areas. The number of unemployed at the end of the third quarter stood at 1.196 million against 1.309 million a year earlier and 1.085 million at the end of June 2002.

European Bank Loans Morocco 120 Mln Euros for Power grid Interconnection with Spain

RABAT, Dec. 26 - The European Investment Bank (EIB) has loaned Morocco 120 million Euros to finance a second interconnection of the North African country's power grid with Spain's.  A warrant contract related to the loan was initialed here Thursday by Moroccan Finance and Privatization Minister, Fathallah Oualalou, and EIB Vice-President Francis Mayer. The Moroccan-Spanish interconnection project, valued at 363.2 million Euros, seeks to increase Morocco's supply in power, particularly in the northern areas of the country. The project, to be completed in 2005, will increase the power exchanged between Morocco and Spain to 1,400 megawatts from 700 megawatts presently and between Morocco and Algeria to 1,200 megawatts from 300 currently. Morocco imported 2,268 megawatts of power from Spain in 2001, representing 16.3 percent of the country's national consumption. EIB extended Morocco funds worth 280 million Euros in 2001. The funds are mainly used to finance highway, hydraulic and agricultural equipment projects.

MAP 2002 http://www.map.co.ma/mapeng/eng.htm 

RABAT, Dec. 26 - Means to speed World Bank-backed reforms of the Moroccan health sector topped talks held here recently between Moroccan health minister, Mohamed Biadillah, and head of the WB social department for the Middle East and North Africa, Jacques Baudouy. The two sides surveyed various aspects of Morocco-WB cooperation, including a social priority project and a project to fund health management. The Moroccan official stressed the need to give a new impetus to cooperation between Morocco and the Bretton Woods institution and invited the WB to extend further backing to Morocco's short and medium health priorities. Baudouy said high level WB experts will assist the Moroccan health department prepare texts fir the implementation of a law on compulsory health insurance.

European Bank Lends Morocco 20 Mln Euros for Environment Projects

RABAT, Dec.27 - The European Investment Bank (EIB) lent Morocco's drinking water authority (ONEP) 20 million Euros to finance various environment projects. The loan, carrying a 3% interest rate, is to be reimbursed in 20 years, including a five-year grace period. It is part of an ONEP project worth 44.4 million Euros running between 2003 and 2006. With this fourth loan, EIB's loans to ONEP stands at 160 million Euros. The bank's total funds extended to Morocco have reached 280 million Euro in 2001. Sectors concerned are highway construction, hydro-electric projects, improvement of drinking water supply and rehabilitation of agricultural equipment.

Germany's Development Aid to Morocco Boosted by 15 Million Euros

RABAT, Dec.25 - Germany has decided to boost this year's development and cooperation aid to Morocco by 15 million euros, according to a communiqué of the German embassy in Rabat. Germany's ambassador to Rabat, Roland Mauch announced his government's decision in a meeting here on Monday with Morocco's Premier, Driss Jettou. During the meeting, the two men exchanged views on issues of common interests. During the joint commission's negotiations, held last September, the German government voiced commitment to earmark 100 millions euros for the implementation of common projects, recalls the same source.

MARRAKESH, Dec. 24 - A Niger delegation that visited Morocco recently voiced interest in Morocco's experience in matters of renewable energy and voiced wish to draw inspiration from this experience. The delegation asked for the assistance of the Moroccan Center for Renewable Energies (CDER) in holding the first Niger Forum on Renewable Energies next year. The delegation visited several projects, supervised by the Center in matters of energy control and rural electrification. The delegation asked the Moroccan center to assist Niger in devising a national program for decentralized electrification. The CDER and the Niger National Council for Environment for a lasting Development in Niger signed a convention providing for cooperation in renewable energies and lasting development.

Morocco Readies to Authorize Private TV Channels, Radio Stations

RABAT, Dec. 26 - Morocco on Thursday announced that private TV channels and radio stations can be authorized in the country in the few months to come. TV channels and radio stations "can be authorized to operate legally in Morocco in the months to come, pending the enforcement of a law regulating audio-visual media," Moroccan Communication Minister and Spokesman for the Government, Nabil Benabdallah, said. The official, who was speaking at the end of the weekly meeting of the Government Council, said more than 30 applications have been submitted for the creation of private TV channels and radio stations. These applications will be studied on due time, he said. Morocco currently as two public TV channels, RTM and 2M, and several radio stations covering the national territory. A draft law, ending the state control of the audio-visual sector, will be submitted to the parliament after its endorsement by the Government Council, said Benabdallah, who added that the text offers the possibility to create TV channels and radio channels.

© MAP 2002 http://www.map.co.ma/mapeng/eng.htm 

PARIS, Dec. 25 - Accor, Europe's leading tourism group, said it wishes to contribute to Morocco's drive to drain 10 million tourists by 2010. "Morocco is a politically stable country and this stability is very important for foreign investors," said Marc Thepot, head of Accor's Morocco branch. Thepot said his group is now at half way regarding the objective it set back in 1996 when it signed a convention with the Moroccan government for the construction of 7,000 rooms by 2008. "We want to show that we wish to be permanently present on the Moroccan market," he said. Thepot said Accor will dedicated several projects in Morocco in 2002 including two low-price hotels, a thalasso-therapy station and a sea-side restaurant.  The group currently employs 1,860 people in Morocco, Thepot said, noting that his group's major project in Morocco is to build the Casa City Center in downtown Casablanca. Accor will invest 100 million Euros to build the center, he said. "The center will include a congress compound, offices, trade areas, cinemas and three large hotels of 750 rooms," he said.

Morocco will Involve Embassies Abroad in Attracting Investments

RABAT, Dec. 26 - Morocco said it will endow its embassies abroad with mechanisms necessary to attract foreign investments to the country. The program devised by the foreign affairs and cooperation department in this connection revolves around the training of economic advisors who will work with Morocco's diplomatic representations aboard with a view to promoting business opportunities offered by the country, Foreign Affairs and Cooperation Minister, Mohamed Benaissa, said. To attain this objective, Benaissa stressed the need for coordination between his department and the professional associations concerned, particularly Morocco's industrial federation (CGEM). He also called for holding economic and commercial events in the countries, where Morocco has representations, for a better publicizing of Morocco's business opportunities.

Endesa signs agreement to build power station in northern Morocco 

Endesa, the Spanish power group, will be building a power station in northern Morocco. On Thursday Driss Jetu, prime minister of Morocco, attended the ceremony during which the agreement on the project was signed. Some $243m is being invested in the project, which is also the first Spanish-Moroccan initiative after months of tension between the two countries. The political importance of the alliance was reflected in the fact that Jose Bogas, general manager of Endesa, prepared his speech for the signing ceremony with the backing of the Spanish embassy in Rabat. L'Office National de l'Electricite (ONE), the Moroccan state power group, and Endesa will build a 384MW power station in Tahaddart, near Tanger. Siemens of Germany will supply the technology. Original article by Roberto Casado

Morocco's Prince Moulay Rachid Receives US Outstanding Film Producers, Directors

Morocco's Prince Moulay Rachid, younger brother of King Mohammed VI, received in Paris on Thursday famed US producers and directors, including Dino De Laurentis and Baz Lurhman, director of "Moulin Rouge," a 2001 box office blockbuster. De Laurentis and Lurhmann presented to Moulay Rachid plans and time table for the construction of large cinema studios in Ouarzazate, Southern Morocco.  Prince Moulay Rachid is Chairman of the Foundation of the International Film Festival of Marrakesh. The studios, to be built over 150 hectares, will allow for the shooting of two major films annually per year, starting from 2004. As associated partners in the projected investment, De Laurentis and Lurhmann chose Morocco (Ouarzazate and the Mediterranean coast) to shoot their next mega production on the epic of Alexander the Great, starring Leonardo Di Caprio. With a budget of US$ 150 million, the movie will be among the most important films in history. Some 50 to 60 of the budget will be invested in Morocco. After Alexander the Great, De Laurentis and Lurhmann will shoot in their studios in Ouarzazate another US$ 60 million budget movie, "The Last Legion."

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